Science, Tech, Math › Social Sciences Definition and Example of a Markov Transition Matrix Print Financial Markov Process, Creative Commons Attribution-Share Alike 3.0 Unported license. Social Sciences Economics U.S. Economy Employment Supply & Demand Psychology Sociology Archaeology Ergonomics By Mike Moffatt Mike Moffatt Professor of Business, Economics, and Public Policy Ph.D., Business Administration, Richard Ivey School of Business M.A., Economics, University of Rochester B.A., Economics and Political Science, University of Western Ontario Mike Moffatt, Ph.D., is an economist and professor. He teaches at the Richard Ivey School of Business and serves as a research fellow at the Lawrence National Centre for Policy and Management. Learn about our Editorial Process Updated on March 19, 2018 A Markov transition matrix is a square matrix describing the probabilities of moving from one state to another in a dynamic system. In each row are the probabilities of moving from the state represented by that row, to the other states. Thus the rows of a Markov transition matrix each add to one. Sometimes such a matrix is denoted something like Q(x' | x) which can be understood this way: that Q is a matrix, x is the existing state, x' is a possible future state, and for any x and x' in the model, the probability of going to x' given that the existing state is x, are in Q. Terms Related to Markov Transition Matrix Read More Paragraph Transition: Definition and Examples By Richard Nordquist Markov ProcessMarkov StrategyMarkov's Inequality Resources on Markov Transition Matrix What is Econometrics? How to Do a Painless Econometrics Project Econometrics Term Paper Suggestions Writing a Term Paper or High School / College Essay? Here are a few starting points for research on Markov Transition Matrix: Journal Articles on Markov Transition Matrix Estimating the Second Largest Eigenvalue of a Markov Transition Matrix Estimating a Markov Transition Matrix from Observational Data Convergence across Chinese provinces: An analysis using Markov transition matrix Cite this Article Format mla apa chicago Your Citation Moffatt, Mike. "Definition and Example of a Markov Transition Matrix." ThoughtCo, Apr. 5, 2023, thoughtco.com/markov-transition-matrix-definition-1148029. Moffatt, Mike. (2023, April 5). Definition and Example of a Markov Transition Matrix. Retrieved from https://www.thoughtco.com/markov-transition-matrix-definition-1148029 Moffatt, Mike. "Definition and Example of a Markov Transition Matrix." ThoughtCo. https://www.thoughtco.com/markov-transition-matrix-definition-1148029 (accessed March 29, 2024). copy citation